[ET Net News Agency, 17 March 2021] Jefferies Research lifted its target price for ZTE
Corporation (00763) to HK$20.66 from HK$16.77 and upgraded its rating to "hold" from
"underperform".
The research house said ZTE's 2H 2020 revenue beat JEF's estimate by 8%, but profit
missed despite Rmb900m investment gain and negative tax. With larger industry scale
driving cost lower, ZTE's GM (gross margin) could have bottomed. Its 1Q 2021 preview
implies 85% profit growth and better margin.
Despite disappointing 2H20 results, Jefferies sees the potential for its GM to improve
in 2021. Its quarterly trend indicates a slightly improving margin trend toward 4Q 2020,
which was driven by stabilizing carrier GM but better GM for the G&C (Government and
Corporate) and consumer (modem, routers, set-top box, etc) segment. (KL)
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00763 ZTE
Nominal 
15.640 -0.260 (-1.635%) Research Report
17/03/2021 14:05
{I-bank focus}Jefferies upgrades ZTE (00763) to HK$20.66
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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